47 Pa. D. & C.5th 315
Pennsylvania Court of Common P...2015Background
- Patrick Bane was president of Comtel Communications, Inc.; Comtel filed Chapter 7 in Dec. 2008.
- In Nov. 2009 Alpem Rosenthal (plaintiff) agreed to provide litigation support to Comtel for hourly fees; the engagement agreement required arbitration for disputes and stated arbitration awards could be entered as final judgment.
- Plaintiff performed work from Nov. 2009 until terminating services for nonpayment on Dec. 30, 2011; invoices were partially paid.
- The parties submitted the fee dispute to arbitration in Jan. 2013; they signed a consent award/stipulation (signed by Bane) executed by the arbitrator Apr. 25, 2013, permitting entry of judgment for $44,085.37.
- Plaintiff petitioned to confirm the award and obtain judgment; judgment was entered July 17, 2013. Bane did not challenge the award within 30 days and later filed a petition to strike/open judgment on Feb. 13, 2015, which the trial court denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the judgment is a confessed judgment subject to strike/open as such | Judgment rests on arbitration award/consent and is properly entered, not a confessed judgment | The judgment is a confessed judgment and therefore subject to petition to strike/open | Not a confessed judgment; judgment was entered under arbitration confirmation statutes, so confession-of-judgment law does not apply |
| Whether the judgment record shows fatal defects warranting striking the judgment | Record contains a signed arbitration stipulation and judgment; no fatal defect on the face of the record | Pleads defects in arbitration process and claims payments promised by counsel, warranting striking | No fatal defect on record; motion to strike denied (motion akin to demurrer to the record) |
| Whether defendant waived right to challenge arbitration by failing to timely seek relief | Confirmation statute requires challenge within 30 days; failure to timely challenge waives arbitration errors | Defendant contends he can still open/strike the judgment despite delay | Held waiver applies; because Bane did not challenge within 30 days of award, he waived arbitration-process errors and cannot open judgment |
| Whether court erred by not issuing rule to show cause or allowing discovery before denying petition | No prima facie ground for relief shown, so no rule or discovery required | Court should have issued rule to show cause and permitted discovery before denial | No error: petitioner failed to show prima facie grounds, so rule to show cause and discovery not required |
Key Cases Cited
- Crum v. F.L. Shaffer Co., 693 A.2d 984 (Pa. Super. 1997) (warrant of attorney required for confessed-judgment instruments)
- National Recovery Sys. v. Monaghan, 469 A.2d 244 (Pa. Super. 1983) (motion to strike judgment requires fatal defect on record; motion is like a demurrer to the record)
- U.S. Claims, Inc. v. Dougherty, 914 A.2d 874 (Pa. Super. 2006) (failure to challenge arbitration award within 30 days waives arbitration-process errors)
- Sage v. Greenspan, 765 A.2d 1139 (Pa. Super. 2000) (same regarding waiver of arbitration challenges for delayed court action)